Sec.17-31ee-5. Loan guarantees

(a) All loans shall be made at the discretion of the Commissioner for a period not to exceed five (5) years from the date of the loan agreement.

(b) Loans may be secured or unsecured at the discretion of the Commissioner.

(c) If the loan is to be secured, the Commissioner may require the borrower to provide as security any or all of the following: real property, accounts, chattel paper, documents, instruments, general intangibles, goods, equipment, inventory or other personal property, and may further require the borrower to have executed and delivered to the Department such security agreements, financing statements, mortgages, pledges, assignments, subordinations, guarantees or other documents or evidences of security as required by the Commissioner, and in the form required by the Commissioner.

(d) Disbursement of the loan shall be made at the discretion of the Commissioner in accordance with the provisions of the loan agreement; and confirming use of funds by the borrower; and use of loan funds by the borrower shall be subject to monitoring and audit by the State.

(e) The loan shall be repaid on an amortized schedule of payments or upon such other method of payment of principal and interest as the Department considers necessary and appropriate in the particular circumstances.

(f) The rate or rates of interest shall be established by the state bond commission in accordance with subsection (t) of Section 3-20 of the Connecticut General Statutes.

(g) The loan funds shall not be used to refinance existing loans or existing indebtedness.

(Effective August 28, 1989)